New local bank bucking trend

With the stock market in the tank, it hardly seems like the best of times to open a new bank, but organizers of Springfield's Nuvo Bank & Trust Co. are bullish about the institution's prospects for success.

We think they have a right to be optimistic about the future of the new bank, which opens next week in Tower Square in space once occupied by the former Bay Bank.

James E. Garner, chief executive officer of Nuvo Bank - the first new bank in Greater Springfield in more than 20 years - says the institution is opening with a clean slate and $13 million in capital. "We don't have any bad debt," he said. "We have a clean record."

Fortunately, banks across the state are well insulated from the kind of problems national banks are facing as a result of Wall Street's troubles. "Our banks are doing well," said Bruce E. Spitzer, director of communications for the Massachusetts Bankers Association, adding that "in the world of counterintuitive thinking, it makes perfect sense to open a bank now."

The opening of Nuvo Bank- capitalized by local investors - is good news for local entrepreneurs who might have difficulty - especially given the current climate - securing credit from bigger national banks. Nuvo will fill an important niche by concentrating on commercial loans to small and medium-sized businesses. Those small and medium-sized enterprises have always fueled the local economy, creating jobs and generating tax revenues for nearby cities and towns.

Even before it opens its doors, the bank appears to be off to a good start. Jeffrey S. Sattler, Nuvo's president, said the bank has already attracted $4 million in deposits since getting its charter in April. Its goal is to have between $35 million and $40 million by the end of its first year. Nuvo has also made 13 loans totaling about $5 million with a goal of lending $40 million in its first year.

With the tough times ahead, Nuvo has the potential to become a catalyst for economic development in Springfield. It's a hope we all share.